Property Insurance Manual (Atlantic Region)

Transcription

1 Property Insurance Manual (Atlantic Region) Effective: New Business July 15, 2021

2 Table of Contents General Eligibility Rules... 3 General Acceptability Guidelines... 6 Discounts Surcharges Insurance Score Homeowners Secondary Homeowners Condominium Overview Tenants Rental Properties Seasonal Properties Modular and Mini Modular Homes Liability Coverage Legal Expense Insurance Endorsements & Optional Coverage Rating Territories New Brunswick Nova Scotia Prince Edward Island Page 2

3 General Eligibility Rules A risk that possesses any of the following attributes will be declined for insurability with CAA Insurance; 1. Risks which have been cancelled (including for non-payment), lapsed or declined by an insurer in the past 5 years. 2. Gaps in insurance coverage. * 3. No prior insurance, unless; * First time home buyer or renter; Moving out from their parents residence; Child of CAA property insured. A minimum $1,000 deductible will apply. 4. Risks with a questionable moral hazard. 5. Risks that lack pride of ownership. Includes poor housekeeping and lack of prudent maintenance. * 6. Risks with abnormal fire, burglary or liability. 7. Risks which are vacant or unoccupied at new business. 8. Risks in the name of numbered companies, personal business or corporations. 9. Risks with more than two (2) mortgages. * 10.Risks where there are more than 2 families (in total) living in a single dwelling. 11.Risks which have commercial exposure, unless an eligible condominium, or tenant risk over a commercial occupancy, or the risk falls within the eligibility guidelines of the Home - Based Business. 12.Incidental office use operated by a person other than the insured. 13.Risks insured for less than 100% of their replacement cost. 14.Risks where any degree of farming is carried out; hobby farm or otherwise or a risk located on a farm. 15.Buildings under construction/major renovation or owned by a contractor/developer for future sale. 16.CAA does not insure standalone Seasonal, Secondary and Rental locations. * Additional information is provided in the Property Insurance Reference Manual. Page 3

4 17.Owners or Occupants of Rooming, Boarding or Student Housing. 18.Risks not accessible by fire-fighting and emergency services by road year around (e.g. Island homes). * 19.Risk ownership on leased land (other than Crown Land). 20.Risks where there is a wood burning stove in a structure other than the Primary residence. I.e. garages or detached buildings. 21.Any risk involved in the generation and sale of electrical power to the power grid. 22.Risks where the Asphalt shingles have reached a life span of 25 years. 23.Risks with an In-ground/Buried Oil tank. * 24.Risks with a single wall metallic oil tank. 25.Homes under 63.2m 2 (680 ft 2 ). * 26.Primary dwellings must be owner occupied. 27.Properties located within 12.2m (40 feet) of a manufacturing risks or high hazard commercial such as a gas or propane refilling station. 28.Babysitting where there is exposure to more than 5 children (including the insured s children) or a licensed daycare. Babysitting or daycare where there is a swimming pool or trampoline on the premises is unacceptable. 29.Risks with vicious pets or animals (including guard dogs). * 30.Risks classified as Heritage or Century Homes. * 31.Risks converted to double occupancy. * 32.Risks known to be currently or previously involved in marijuana grow operations or drug laboratories. 33.Risks with 5 or more cannabis plants (per household) for personal or medical reasons. 34.Bracket chimneys. * 35.Open foundations. * 36.Wood foundations. * 37.Risks where there is galvanized plumbing. * 38.Log Homes. 39.Mobile homes 1. * * Additional information is provided in the Property Insurance Reference Manual. 1 Mobile Home - A moveable home that originally included its own running gear and was superseded by the modern day manufactured home in the early 90 s. Page 4

5 40.Knob and tube wiring. * 41.Risks with 60-amp service. * 42.Risks with aluminum wiring, unless a hydro certificate is obtained from a licensed electrician stating the system meets requirements (completed in the last 24 months). * 43.Outbuildings or Private structures that are rented out or tenant occupied. 44.Pier foundations, except for mini modular homes and seasonal properties which meet the following conditions: * The structure is to be securely fixed in place (tied down) using: brackets forming part of the pier or helical piles permanently secured to the building frame; or anchors and or tie downs, and skirted. All piers are to be on concrete footings below the frost line; Piers may be: Concrete (sono tubes) Concrete blocks, or Metal helical piles3 are also acceptable. All piers, metal helical piles, tie-downs, straps and anchors are to be professionally installed according to the manufacturers specifications. 45.Risks rented on a short-term basis through an online vacation rental marketplace will not be written. * Additional information is provided in the Property Insurance Reference Manual. Page 5

6 Binding Authorities General Acceptability Guidelines Can be referenced separately through your SharePoint site. Building Age Detached Homes >100 years old must be referred to Underwriting. Row/Semi-detached homes cannot be built prior to Construction Type Conventional building materials (ONLY) are acceptable and include, but not limited to: Aluminum Siding Brick Concrete Block Frame Steel Frame Vinyl Siding Fire Protection CAA Insurance will insure locations which are: Hydrant protected (dwellings within 1000 ft.) Firehall: (located within 13kms of a Firehall), or Unprotected (located more than 13 kms of a Firehall) Heating Sources Acceptable Primary Heat Sources Risk should have standard forced air or electrical heating systems as the primary source of heating. These systems must be professionally installed and CSA, ULC, or UL approved. The following mainstream heat sources are acceptable and include (but are not limited to): Combination Furnaces (Other) Combination Furnaces *(Wood/Oil) Coal Forced Air Electric Electric Forced Air Furnace with an Add-on wood burning Unit Gas Forced Air Geothermal Heat Heat Pump (acceptability criteria noted below) Hot Water Forced Air Page 6

7 Oil* (inspection requirements and acceptability criteria noted below) Other (See note below) Outdoor Wood Furnace (acceptability criteria noted below) Propane Heat (acceptability criteria noted below) Radiant Heat Systems Solar Heating Other primary heat sources not specifically referenced should be referred to underwriting for consideration. *Surcharge will apply. Refer to surcharge section for details. Secondary Heat Sources The following are secondary sources of heat used to provide additional heat for specific areas. Acceptable Secondary Heat Sources Fireplace (wood, natural gas and propane) Fireplace Inserts * Space Heaters * Wall Furnaces Wood/Corn Pellet Stove * Woodstove * The above are acceptable when the unit is installed to CSA/ULC standards. *Auxiliary Heat surcharge will apply to the above types. Refer to the surcharge section for details. The maximum amount of wood consumption allowed annually would be: 2 bush cords. Unacceptable Secondary Heat Sources Homemade Stoves Kerosene Heaters Solid Fuel Heating questionnaire must be completed fully and accurately where applicable and underwriting should be contacted where the unit is not WETT certified or if there are questions or concerns. Please retain a copy for our records. Age of Furnaces All Hot Water (Hydronic) or Forced Air furnaces (excluding Electric Forced Air furnaces) over 30 years old must be referred before binding. Electric Heat Any location where the primary heat source is Electric it must be wired with amp service. Page 7

8 Heat Pumps A heat pump is an electrical device that extracts heat from one place and transfers it to another. We will accept heat pumps as a primary heat source if: Professionally installed by certified technician; CSA/ULC approved; Acceptable up to 20 years old; The home would also have an auxiliary heating system that meets our eligibility guidelines in addition to the heat pump; Required replacement of filters once a month to every three months, depending on how often it is used; Regular maintenance required annually by a professional; Ensure proper air flow. Plants growing near the unit, or any other debris, may have to be removed. Oil Heat New business risks heated with oil will require an inspection of the oil tank within the first ninety (90) days of the new term. This will ensure safety standards are met. The inspection will be arranged at the expense of CAA Insurance. This will be an inspection of the oil tank only. Acceptable Oil Tanks Composite (Metallic tank with polyurethane inner tank) Fibreglass Metallic (Double Wall or Double Bottom) Plastic If Other is selected as the Oil Tank Material, more information will be required. Please refer to Underwriting. Oil Tank Location and Maximum Age The oil tank location may be described as: Indoor (within the dwelling unit) Fibreglass Construction: 40 All Other Eligible Construction Materials: 20 Outdoor (outside the dwelling unit, above ground) Fibreglass Construction: 40 All Other Eligible Construction Materials: 15 Outdoor Underground Oil Tanks Not written Maximum Age (in years) Maximum Age (in years) Page 8

9 Oil Tank Life Expectancy Notes Fibreglass tanks have the greatest life expectancy. Composite, and Metallic (double wall or double bottom) have a lower life expectancy but will normally include a leak detection system that alerts customers of the leak before it breaks through the second layer of the unit. This gives the customer the necessary warning allowing them to replace the tank before there is any contamination. See Reference Manual for Best Practices on oil tank installation. Propane Heat Propane heating systems will be accepted provided the following criteria met; Tank must be professionally installed by a qualified service technician in accordance with Canadian Gas Association standards. Tank must be certified by the Canadian Standards Association (CSA) or Underwriters Laboratories of Canada (ULC). Many products sold outside Canada do not comply with Canadian safety standards Propane tanks must be located outside of the building, away from heat or sources of ignition (matches, smoking materials, etc.), and in a secure, well-ventilated area. Also, must be protected from vehicular impact and off the ground, on a noncombustible base. Solid Fuel Burning Units must be: installed by a qualified contractor and cleaned regularly to avoid build-up of creosote or other combustible material in the chimney. tested and approved and must have a safety standard label affixed to it. The label lists clearance requirements around the unit. cleaned annually to avoid creosote build-up which would be a fire hazard. Wood Furnaces Outdoor Wood Furnaces will be accepted provided the following criteria are met: Must be professionally installed by a WETT certified technician; Certified by CSA, ULC or Interteck/Warnock Hersey; Located a minimum of 15m (50ft) away from the dwelling or any other structures; The unit is located inside a structure which is approved for this purpose; Installed on a non-combustible surface (permanent pad of concrete or crushed gravel) and clear of debris; Equipped with a spark arrester cap on the top of the chimney; The insured property must be owner occupied. Outdoor furnaces are not acceptable in rental dwellings, or tenant policies; Page 9

10 Must have a back-up heat source in the house; Requires that seasoned dry wood be the only source of fuel and that the outdoor wood furnace must only be used for heating purposes; No burning of waste/garbage will be allowed; Homemade units are not acceptable; * a photo of the unit is required to show the furnace, the pad it is mounted on, the chimney, rain cap and that it is free from debris. Inspections CAA may order a: Full Inspection and/ or an Oil Tank Inspection where the risk meets the conditions described under the applicable heading. Full Inspection A full inspection is required and will be ordered where the risk meets the following criteria: dwelling is built prior to 1950; and/or dwelling is valued over $900,000. Oil Tank Inspections New business risks heated with Oil will require an inspection of the Oil Tank within the first ninety (90) days of the new term. The inspection will be arranged at the expense of CAA Insurance. This will be an inspection of the oil tank only. Occupancy A maximum of two (2) non-related persons can be listed as Named Insured on a policy. Plumbing Copper and PVC plumbing are acceptable with no issues as to age. Cast iron is acceptable for outside sewer pipes only. Kitec plumbing is unacceptable. Page 10

11 Prior Claims Please see below for acceptability rules for New and Renewal Business based on form type. Acceptability for Preferred vs. Regular Homeowner rates will be discussed in later Chapters. Form Type Homeowner Tenant (Broad) Tenant (Comprehensive) New Business Acceptability 1 claim in 3 years 0 claims in 3 years Condominium (Owner Occupied and Rental Units) Residential Fire and Extended Coverages (Rented Dwelling) 1 claim in 3 years Seasonal Risks Effective: New Business July 15, 2021

12 Discounts The following Discounts apply to all lines or as specified below; Note: No capping will apply to these discounts Alarms Monitored Burglar Alarm 10% Monitored Fire Alarm: 5% Eligibility: 24-hour monitoring by a Central Alarm Station. Applicable for Comprehensive and Broad Homeowner, Comprehensive and Broad Tenant, Comprehensive Condominium and Deluxe Seasonal risks. CAA Member Member of any CAA club in Canada: 10% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium, Comprehensive and Broad Tenant and Deluxe Seasonal risks. Claims-Free Discount when 3 years claims-free has been validated: 5% Discount when 5 years claims-free has been validated: 10% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium, Comprehensive and Broad Tenant and Deluxe Seasonal risks. Employee All employees and board members currently employed (or retired) with CAASCO, CAA N&E, CAA Niagara, CAA Atlantic, CAA Saskatchewan, CAA Manitoba and CAA National, including any spouse or relatives residing in the same household as the Employee. Employee discount: 20% Family May be applied to risks for policies of a parent, spouse, common-law or child where they all have a property insured with CAA Insurance: 5% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium, Comprehensive and Broad Tenant and Deluxe Seasonal risks. Loss Prevention Device- Applies to CAA Water Premium Where the customer has an industry approved and professionally installed loss prevention device as shown below: 10% A Backwater Valve attached to the main service line of the dwelling. A Sump Pump with a battery, generator or water powered back-up system. Page 12

13 Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium (Owners policy), Comprehensive and Broad Tenant, Deluxe Seasonal, Residential Fire and Extended Coverages (Rented Dwelling) and Comprehensive Rented Condominium risks. Mature If the Named Insured or spouse is 45 years of age of older: 10% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium, Comprehensive and Broad Tenant and Deluxe Seasonal risks. Mortgage Free* For risks that are mortgage free and free of encumbrances, whether listed or not. This includes any form of secured line of credit. 5% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium and Deluxe Seasonal risks. *Also applies to CAA Water Coverage rates. Multi-Line When the insured has (both) Property and Automobile insurance with CAA. If the insured does not currently have an active auto policy but promises to bring their business to CAA, we will allow the discount. Approval is not required. A promise is determined by; 1. Quoting the automobile line 2. Assess genuine interest 3. Obtain expiry date. Multi-Line discount (Homeowners): 12.5% Multi-Line discount (Other lines): 10% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium, Comprehensive and Broad Tenant and Deluxe Seasonal risks. New Home Depending on the year the home was built, the following discount percentages are applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks. Age of Home 0-2 years 20% 3-5 years 17.5% 6-9 years 15% years 12% years 10% 16 years 9% 17 years 8% Page 13

14 18 years 7% 19 years 6% 20 years 5% 21 years 4% 22 years 3% 23 years 2% 24 years 1% A separate Age of Home discount applies to CAA Water Coverage rates only for Comprehensive and Broad Homeowner and Deluxe Seasonal risks. Age of Home applies to CAA Water Premium Under 1 year 10% 1 year 9% 2 years 8% 3 years 7% 4 years 6% 5 years 5% 6 years 4% 7 years 3% 8 years 2% 9 years 1% Superior Shuttle Tanker To be applied to risks within 13 km (8 miles) of a responding Fire Hall with Fire Underwriters Survey Superior Shuttle Tanker (Tanker Service Accreditation) serviced by year-round roads. 5% Applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks. Water Detection To be applied to the CAA Water Coverage endorsement premium where the customer has industry approved water detection sensors: 5% Applicable for Comprehensive and Broad Homeowner, Comprehensive Condominium (Owners policy), Comprehensive and Broad Tenant, Deluxe Seasonal, Residential Fire and Extended Coverages and Comprehensive Rented Condominium risks. Page 14

15 Surcharges The following Surcharges apply to all lines or as specified below. Age of Home Surcharge Applies to CAA Water Premium Where risks are 35years of age or older: 5% Applicable for Comprehensive and Broad Homeowner and Deluxe Seasonal risks. Auxiliary Heat For any risk with a solid fuel burning appliance (wood/corn pellet stove, woodstove), fireplace insert, space heater or wall furnace: 10% Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended Coverages, Deluxe and Seasonal Dwelling-Standard Form. Combination Furnace For any risk where there is a combination furnace: standard heating combined with any kind of solid fuel: 10% Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended Coverages, Deluxe and Seasonal Dwelling-Standard Form. Multi Family In addition to the liability extension charge, when there are 2 families (in total) in a single dwelling: 10% Applicable for Comprehensive and Broad Homeowner and Residential Fire and Extended Coverages. Oil Tank When there is an oil tank on the premises: 10% Applicable for Comprehensive and Broad Homeowner, Residential Fire and Extended Coverages, Deluxe and Seasonal Dwelling-Standard Form. Primary Heating (Non-Standard) In the event that an exception is made for a secondary heat source to be used as primary heat for the risk: 50% Prior Sewer Backup/Flood Claim This applies to the CAA Water Coverage endorsement premium where there is 1 Sewer Backup or Flood related claim in the last 5 years: 16% Applicable for Comprehensive and Broad Homeowner, Comprehensive and Broad Tenants, Comprehensive Condominium, Residential Fire and Extended Coverages, Comprehensive Rented Condominium and Deluxe Seasonal Form. Page 15

16 Tenant over Commercial This applies to any risk where the apartment is located 5 storeys or less over a commercial exposure (must be referred and approved by an Underwriter) 20% Applicable for Broad Tenant. Effective: New Business July 15, 2021

17 Insurance Score Recognizes financial responsibility and would be based on the credit score of the primary named insured. Consent is required from the customer at New Business (written or verbal where voice recorded) to allow us to access his/her credit bureau file. An Insurance Score will then be processed, and a rating variable applied for qualifying applicants, which could result in savings of up to 10% for the customer. A new insurance score may be requested by the Insured at any time by giving consent. However, the insurance score cannot be applied mid-term. Where no consent is received, no rate reduction will apply. Rate will not increase due to an unfavorable credit score. Applicable to Comprehensive and Broad Homeowner, Comprehensive Condominium (Owners policy), Deluxe and Seasonal Dwelling-Standard Form. Page 17

18 Homeowners The Homeowner program offers 2 types of coverage: Broad Homeowner form, and Comprehensive Homeowner. While the choice of forms under this program is at the option of the applicant so long as all eligibility requirements have been met, it is advisable to offer the client the Comprehensive coverage. Comprehensive coverage offers broader coverage and increased peace of mind. Regular vs. Preferred Rates Within the Homeowner program, there are two types of rates available based on further underwriting considerations. Age of Building Regular Preferred <=100 years old <=75 years old Building Type Regular Preferred Detached dwelling <=100 years old Detached dwelling <= 75 years old. Modern Row/Town House, Link Home or Semi-Detach build before Electrical Service Regular Semi-detached, Link Homes or Townhouses built in 1955 or later Preferred If the service in the home is 60-amp: the building must be no larger than 93m 2 (1,000ft 2 ) A minimum of 100-amp service is required. with no more than 2 occupants, who are at least 45 years of age. Fire Protection Regular Hydrant Fire Hall Unprotected Preferred Hydrant Fire Hall Page 18

19 Minimum Replacement Value Regular Preferred =>$100,000 =>$100,000 Number of Families Regular Preferred More than 1 Family 1 Family Prior Insurance Regular If no prior, a minimum deductible of $1000 will be imposed. Deductible can be lowered at the subsequent renewal where no losses have been sustained. Roof Regular Asphalt shingles must be less than 25 years old. Units Rented to Others Regular Up to 2 fully contained units in addition to the insured s fully contained unit is acceptable. Coverage will be permitted for the rented dwelling if rented to persons not defined as the insured in the policy wording. Preferred Minimum of 1-year insurance experience. Preferred Asphalt shingles must be less than 20 years old. Preferred No rental units allowed. Wiring Regular Knob & Tube wiring must be less than 10% of the total wiring and no part of any wiring to an electrical outlet may contain knob & tube wiring. 10% is acceptable if used to power permanently installed minor items as a ceiling light fixture only. Preferred No Knob & Tube present in the home. Preferred to Regular Rating Adjustment Preferred rating will be adjusted to Regular rates if the following occurs at renewal: the roof shingles are now over 20 years old; the building age is 76 years or older. Page 19

20 Guaranteed Replacement Cost-Dwelling Building If a home is insured for the full replacement cost of the building, based upon a valuation approved by the company we will guarantee the full replacement cost of the house as necessary. For example: Mr. Smith s home is insured for $170,000 (based on an approved valuation of the dwelling). Six months into the policy term there is a fire, which destroys the entire home. Due to the fact that there is a local construction strike, the insurer is faced with much higher rebuilding costs. The final cost to rebuild the home is $200,000. With this endorsement on the policy, the company will pay the full cost of rebuilding, even though it was more than the face value of the policy. NOTE: This endorsement is only available for Comprehensive and Broad Homeowner and Deluxe Seasonal policies. This endorsement is automatically included in the Broad and Comprehensive Homeowner and Deluxe Seasonal policies; the premium is read into the basic policy premium. Insurance to Value If an evaluation of the dwelling has been completed and a subsequent report indicates that the home is not insured 100% to value, the amount of building insurance will be increased to the appropriate amount. The value of the increase will determine if the increase will take effect immediately, or at the next policy renewal. If an insured is not willing to accept the amended insurance valuation on the home, we should arrange for the insured to sign off the policy. The cancellation would be processed on a pro-rata basis. Page 20

21 Homeowners Property Insurance Coverage Homeowners Property Coverage Limits: Coverage A Dwelling As determined by valuation Guaranteed Replacement Cost Coverage B Outbuilding =20% of Coverage A amount Coverage C Personal Property =80% of Coverage A amount (For contents on the premises) Coverage D Additional Living Expenses =30% of Coverage A amount The Single Limit of Insurance will apply for no additional charge. This is the sum of the amounts shown on the Coverage Summary page for Your Dwelling Building (Coverage A), Your Detached Structures (Coverage B), Your Personal Property (Coverage C) and Your Additional Living Expenses (Coverage D). This is the maximum amount we will pay for insured loss or damage in any one occurrence, unless stated otherwise. Outbuilding limits may be increased, at a rate of $0.20 per $100. Reason for the increase must be given. Personal property limits may be increased, at a rate of $3.00 per $1,000. Liability Insurance Coverage Liability Coverage Limits: Coverage E Liability $1,000,000 (minimum) Coverage F Voluntary Medical Payments $5,000 Coverage G Voluntary Property Damage $1,000 Coverage H Voluntary Compensation for Residence Employees As per policy wordings Page 21

22 Secondary Homeowners The Secondary Homeowner program will follow the same underwriting guidelines and offer the same coverage as the Comprehensive Homeowners; however, the following additional underwriting guidelines will apply. Secondary Homeowner Additional Eligibility Any secondary location must follow the attributes noted below to be insured with CAA Insurance. 1. We must insure the principal dwelling. 2. Risks cannot be rented out. 3. Risks must be single family units. 4. The deductible and liability will be the same as shown under the principal residence. 5. The Secondary risk will be located within the same province as the principal residence. Page 22

23 Condominium Overview A condominium policy is required when the insured owns a unit within a condominium corporation. As an owner, they also have a proportionate interest in, and responsibility for, the common elements as well as their unit. This is what differentiates a condominium policy from a tenants, or homeowners policy. The main purpose of a standard condominium policy is to protect the insureds : financial interest in the unit, contents and any betterments or improvements they make or that were made by previous owners; and their personal liability for legal liability damages that occur within the unit. In addition, the policy includes Loss Assessment coverage as the unit owner may be called upon as result of their interest in the common elements to pay a special assessment for damages resulting from: Property - damages to repair or maintain the common elements; or Liability - where the loss occurs in or on a common element; when the condominium corporation lacks the necessary funds to cover the expense. A standard condominium corporation insures the building, common elements, liability and normally, directors and officers liability. A Vacant Land or Bare Land Condominium (name depends upon provincial legislation) corporation only insures the common elements such as landscaped areas, roads through the development, visitor parking areas and underground services like sewer and water. Eligible Condominium Types Freehold Standard Vacant / Bare Land Ineligible Condominium Types* Freehold Common elements; Phased; Leasehold *For any exceptions, please refer to Underwriting. Page 23

24 Comprehensive Condominium (Owner Occupied) Coverage Overview Condominium Personal Property Coverage C Same as the Comprehensive Homeowner s; plus Loss Assessment (Property); Unit Additional Protection; and Unit Improvements and Betterments. The Coverage C limit is set by the Insured with the unit improvements and betterments, loss assessment and unit additional protection being a percentage of the Coverage C limit. Additional Living Expenses Coverage D Same as the Comprehensive Homeowner s; plus Temporary Membership Fees The Additional Living Expenses limit is 50% of Coverage C. Extensions of Coverage Same as the Comprehensive Homeowner s; plus Glass and Doors Liability Section Same coverage as the Comprehensive Homeowner s; plus, Personal Liability Coverage E, also includes: Loss Assessment (Liability) The Loss Assessment limit is the Personal Liability Limit. Condominium Special Extensions (Owner Occupied) Contains a combined (or blanket) limit adding value for customers by providing at no additional premium, a combined limit of 600% of the personal property limit for this section. Loss Assessment Unit Additional Protection Improvements and Betterments The 600% is available for any one of the Special Extensions or any combination of the three on a per occurrence basis. Page 24

25 Vacant/ Bare Land Condominium The Vacant/ Bare Land Condominium Endorsement provides Property and Liability Loss Assessment when added to a Comprehensive, or Broad Homeowners Policy, or a Deluxe Seasonal Policy. The Loss Assessment coverage amount is: $25,000 for Property Loss Assessment; and $25,000 for Liability Loss Assessment. Page 25

26 Tenants A tenants policy is required when the location is one where the applicant or insured owns all or most of the contents but has no interest in the building. Tenant Policy Forms The Tenant program offers 2 types of coverages: Broad coverage, and Comprehensive coverage. The choice of forms under this program is at the option of the applicant. In providing excellent service and products to our insured s and members, we should always recommend Comprehensive coverage, if the insured qualifies. Broad Tenants Form Eligibility Single family or, a maximum of 2 unrelated persons will be accepted. In the case of unrelated roommates, both residents must be named on the policy. The dwelling may be a detached home, flat, apartment or townhouse. All risks located 5 storeys or less over a commercial exposure must be referred to an underwriter. Refer to surcharge section for risks subject to surcharge. Comprehensive Tenants Form Eligibility Single-family tenant occupancy only. The residence must be occupied exclusively for private residential purposes only. There can be no claims in the past 3 years for new business to CAA. The dwelling may be a detached home, flat, apartment or townhouse. Units above a commercial risk located 5 storeys or less are not eligible for Comprehensive Coverage. Comprehensive Tenants coverage will not be permitted for situations where there are two (2) or more unrelated individuals living together. Page 26

27 Tenant Property Insurance Coverage Tenant Property Coverage Limits Coverage C Personal Property As selected Coverage D Additional Living Expenses =50% of Coverage C amount Improvements & Betterments Improvements and Betterments- this is included in the content limit. The amount of coverage for Coverage C-Personal Property should be the total of contents and betterments and improvements combined. The insured should be cautioned to include the actual contents amount and the Improvements and Betterments amount. In the event of a total loss, this is what the insured would have as the maximum possible financial loss. We insure the improvements and betterments that have been made or are acquired which are part of the building within the perimeter walls, floors and ceilings of your unit. This insurance also includes the following property, if owned by the insured: 1. Permanently installed outdoor fixtures, equipment and swimming pools on the premises; 2. Materials and supplies located on or adjacent to the premises for use in the construction, alteration or repair of your Condominium unit; 3. Fittings or fixtures removed from the premises for repair or seasonal storage. Page 27

28 Rental Properties Note - It is required CAA write the customers principal residence to offer coverage on a rental property (dwelling or condominium). Rented Dwellings This section will provide information on coverage for a location that is owned by an Insured that is not lived in by the Insured. These locations are generally rented to others as an investment property. A rental home is typically insured on a Residential Fire and Extended Coverages form; if, however, the insured or an immediate family member lives in a portion of the home a Primary property form can be offered. Rented Dwelling Eligibility Guidelines Please see below for the eligibility guidelines for rented dwelling locations. Any deviation from this criterion is considered an exception and must be approved prior to binding coverage. The dwelling must be less than 100 years old. The building must be insured 100% to replacement value. The minimum replacement value must be equal to or greater than $100,000. No properties on an island will be permitted. If the roof is constructed of asphalt shingles the shingles cannot be over 25 years old. If the dwelling is heated with oil heat, the tank must be professionally installed and maintained. No residence with an in-ground oil tank will be permitted. All water or forced air furnaces must be under 30 years old. This includes gas, oil, propane or hot water. Any location heated with electric heat must be wired with 200 ampere service, otherwise a minimum 100-amp service is required. No risk with auxiliary heat, other than a standard fire place will be accepted. No risk may have any percentage of knob and tube wiring. No dwelling may contain more than two separate living units. Rooming houses will not be permitted. There must be a rental agreement in place with each tenant and the term of the lease must be a minimum of one year. The lease agreement must permit the landlord to enter and inspect the premises, at least once a year. Each tenant MUST carry their own Liability and Tenant s insurance. Page 28

29 A Rented Dwelling Questionnaire to be completed fully and accurately prior to binding risk and underwriting contacted where there are questions or concerns. Please retain a copy for our records. Rent or Rental Value Endorsement The Residential Fire and Extended Coverages form may have a Rent or Rental Value Endorsement added to it under specific conditions. The information on this can be found under the Endorsements & Optional Coverage section. This endorsement is used to cover the insured s loss of rental income due to the rental dwelling becoming un-livable as a result of an insured loss. Co-insurance of 100% is required for this coverage. Values for each location should be provided. There is no deductible for this coverage. Rented Condominiums A rental condominium unit is insured on a Comprehensive Rented Condominium Policy. Rented Condominiums Eligibility Eligible rental condominiums units are the same as owner occupied units. Rented Condominiums Coverage Summary Landlord Property This is personal property of the landlord (Unit Owner) included with and usual to a rented condominium occupied as a private dwelling as well as any unit improvements and betterments made by or acquired by them. Coverage is automatically included for: Landlord Property ($20,000) increased limits are available referral to underwriting required for limits over $50,000 maximum available $100,000 additional premium for limits excess of $20,000 will be system calculated. Fair Rental Value Coverage is automatically included for: Fair Rental Value ($20,000); Increased limits are available Referral to underwriting required for limits over $50,000 Maximum available $100,000 Additional premium for limits excess of $20,000 will be system calculated. Page 29

30 Prohibited Access (2 weeks); and Mass Evacuation (2 weeks). Rented Condominium Special Extensions Coverage is automatically included for: Loss Assessment (Property), 250% of Coverage C; Unit Additional Protection, 250% of Coverage C; and Loss Assessment (Liability), Personal Liability Limit; except for; that part of an assessment made necessary by a deductible in the insurance policy of the Condominium Corporation ($25,000). Additional Living Expenses are not covered under the rental form; it would be part of the tenants policy. Additional information on condominiums can be found in our Property Reference Manual. Page 30

31 Seasonal Property Coverage Forms Seasonal Properties The Seasonal Property program offers 2 types of coverages: Deluxe Seasonal coverage for those that have a seasonal location that is visited regularly throughout the year. It will offer coverage to single family units and provide All Risk coverage on the building and Named Perils on the contents. Seasonal Dwelling Standard Form coverage provides standard coverage on seasonal locations that are owned by an insured and occupied periodically by them for recreational purposes. There is no allowance for the location to be rented to others. Seasonal Trailer - Standard Form provides standard coverage on seasonal locations that are owned by an insured and occupied periodically by them for recreational purposes. It does not include Extensions of Coverage found on the Deluxe or Standard Seasonal forms. There is no allowance for the location to be rented to others. Deluxe Seasonal Deluxe Seasonal Eligibility The Deluxe Seasonal location will follow the same underwriting guidelines as noted under our main eligibility rules however the following additional underwriting guidelines will apply: The building must be well maintained and of professional quality and construction. The building must not be greater than 100 years of age Must be insured 100% to value. Single family occupancy. No Log or Field stone construction. The location may be rented out however not for more than 30 cumulative days in any 12-month period, unless optional endorsement for extended rental is purchased. We will only insure a seasonal dwelling where we write the principal residence on a homeowner s, tenant package or condominium form. We must have a picture of the seasonal dwelling (front and back) within 90 days of writing the risk. No more than one mortgage on the Seasonal location. The Seasonal location must have the same deductible and liability limits as the Principal location. Page 31

32 A home located on an island may be written as long as it is accessible by fire-fighting and emergency services by road, year round, and it is either Hydrant or Fire Hall protected. Does not include coverage for vacation trailers or mobile homes. Dwellings over 40 years old will require upgrades to plumbing, heating and electrical systems within the last 25 years. A central heating system is required as primary. Geo-thermal heating or radiant floor heat is acceptable as long as it is CSA/ULC approved and professionally installed. Wood-burning heat used as primary (or any other heat normally used as auxiliary), will be a referral to underwriting. Must have 100-amp service. Asphalt roofing must be 25 years or less. Any deviation from these criteria is considered an exception and must be approved prior to binding coverage. Deluxe Seasonal Limits and Coverage Summary Description Coverage Minimum Building Limit $100,000 Maximum Building Limit $500,000 Dwelling Building (Coverage A Guaranteed Replacement Cost Detached Structures (Coverage B) Personal Property (Coverage C) Additional Living Expenses (Coverage D) Legal Liability (Coverage E) Will extend from Primary location. Note: The Seasonal Liability Extension will be added automatically on the primary location however where there is a seasonal in another province, this liability extension will need to be added manually to the primary location. Voluntary Medical Payments (Coverage F) $5,000 Voluntary Payment for Damage to Property (Coverage G) $1,000 20% of Coverage A 80% of Coverage A 30% of Coverage A As shown on Coverage Summary page The Single Limit of Insurance will apply for no additional charge. This is the sum of the amounts shown on the Coverage Summary page for Your Dwelling Building (Coverage A), Your Detached Structures (Coverage B), Your Personal Property (Coverage C) and Your Additional Living Expenses (Coverage D). This is the maximum amount we will pay for insured loss or damage in any one occurrence, unless stated otherwise. Page 32

33 Popular coverage with this package would include; Additional Living Expenses; Burglary and Theft coverage; Glass breakage; Inflation Protection; Rental Coverage*; Replacement Cost on Personal Property; Vandalism coverage; Watercraft & Equipment - Special limit of $5,000; Windstorm. *note limitations in eligibility rules. Deluxe Seasonal Optional Coverage The following coverage may be added by endorsement for an additional premium; CAA Water Coverage Extended Rental Coverage See the Endorsements & Optional Coverage section for details. Seasonal Dwelling-Standard Form Standard Seasonal Eligibility: Standard Seasonal properties will follow underwriting guidelines as noted under our main eligibility rules, however the following additional underwriting guidelines will apply to these locations. Any deviation from this criterion is considered an exception and must be approved prior to binding coverage The building must be well maintained and of professional quality and construction. The building must not be greater than 100 years of age. No Log home or field stone construction. The location must be used for the exclusive use of the insured, no rental of the seasonal location is permitted. 60-amp services are acceptable if the dwelling is less than 800 square feet. If the seasonal is winterized and used all year a minimum of 100-amp service is required. We will only insure a seasonal dwelling where we write the principal residence on a Broad or Comprehensive Homeowners, Broad or Comprehensive Tenant Package or Comprehensive Condominium (owner occupied unit) policy. We must have a picture of the seasonal dwelling (front and back) within 90 days of writing the risk. Page 33

34 No more than one mortgage on the Seasonal location. The Seasonal location must have the same deductible and liability limits as the Principal location. A home located on an island may be written as long as it is accessible by fire-fighting and emergency services by road year - round and it is either Hydrant or Fire Hall protected. A central heating system is required as primary. Geo-thermal heating or radiant floor heat is acceptable as long as it is CSA/ULC approved and professionally installed. Seasonal Dwelling-Standard Form Limits and Coverage Summary Description Coverage Minimum Deductible $ 500 Minimum / Maximum Building Limit $ 100,000 $ 350,000 Minimum / Maximum Content Limit $ 3,000 $ 25,000 Dwelling Building Replacement Cost As shown on Coverage Summary page Personal Property As shown on Coverage Summary page Legal Liability (Coverage E) Will extend from Primary location. Note: Seasonal Liability Extension will be added automatically on the primary location however where there is a seasonal in another province, this liability extension will need to be added manually to the primary location. As shown on Coverage Summary page. Page 34

35 Seasonal Trailer - Standard Form Seasonal Trailers Additional Eligibility Guidelines There is no maximum age restriction, but it must be well maintained. We must receive a photo of the trailer (front and back) within 3 months of writing the risk. The trailer must be on a concrete pad, piers or cement blocks, or permanently mounted on masonry foundation. Permanently tied down and skirted. It must be permanently hooked up to electricity, a sewage system, (sewers or septic tank) and water. We must have make, model and serial number. It must be CSA approved and factory built. (not homemade or modified) The unit must not contain a wood-burning appliance. Seasonal Trailer - Standard Form Limits and Coverage Summary Description Coverage Minimum Deductible $ 500 Minimum / Maximum Trailer Limit $ 10,000 $ 75,000 Minimum / Maximum Content Limit $ 3,000 $ 25,000 Dwelling Building Personal Property Actual Cash Value Legal Liability (Coverage E) Will extend from Primary location. Note: Seasonal Liability Extension will be added automatically on the primary location however where there is a seasonal in another province, this liability extension will need to be added manually to the primary location. As shown on Coverage Summary page. Seasonal Dwelling and Seasonal Trailer Optional Coverage The following coverage may be added by endorsement for an additional premium: Burglary & Robbery Coverage Vandalism Coverage See the Endorsements & Optional Coverage section for details. Page 35

36 Modular and Mini Modular Homes Pre-fabricated or Manufactured homes Modular construction is one type of manufactured housing that is distinct from other types in that complete sections are shipped to the site for set-down on a permanent foundation. These modules are built to conform to all provincial, local or regional codes. At the site, one module (mini modular home) or two or more modules (modular home) are joined and finished by a contractor. Water, electricity, and other required utilities are then connected and additions or attached garages may be added. These may be written under a Broad or Comprehensive Homeowner or Seasonal form type and the applicable building type of either Mini-Home or Modular Home will be selected to identify this type of risk. * Modular and Mini Modular Homes Eligibility Existing eligibility rules, for the applicable line type, will apply with the addition of the following. Must meet building standards and be built based on the same regional building codes as a site-built home. Must be on a permanent concrete foundation. (no open foundations and no wheels can be attached) Minimum Building limit - $50,000 Must have drywall interior. The year built cannot be older than Must not be less than 680 square feet. Must have permanent electric, water and sewer lines. Must have a pitched roof, no flat roofs. No wood heat inside as a primary heat source. (wood units as an auxiliary heat source must be approved for use within these manufactured homes) No risks located on a farm or commercial property. No risks located within a mobile home park. House trailers or Mobile Homes are not permitted even if on permanent foundations. * Additional information on Modular and Mini Modular Homes is available in the Property Reference Manual. Page 36

37 Liability Coverage This section describes and provides rates for increasing and extending liability on the primary form. There are also cases where liability is included in the wording but the increased exposure to loss demands an additional premium. Comprehensive Personal Liability Broad and Comprehensive Homeowners, Broad and Comprehensive Tenant Packages and Comprehensive Condominium (Owner occupied unit) policy forms include the following basic liability coverage: Description Coverage Liability Limit $ 1,000,000 Voluntary Medical Payments $ 5,000 Voluntary Property Damage $ 1,000 Note: The policy wording for liability coverage does not exclude liability with respect to swimming pools. It will therefore be the policy of the company not to charge a premium for this. Liability Extensions The following liability extensions are available on all Primary property forms. Liability Limits $ 1,000,000 $ 2,000,000 Premium Principal Residence - (Broad and Comprehensive Homeowners, Broad and Comprehensive Tenant Packages and Comprehensive Condominium (Owner Included $15 occupied unit) policy forms) Additional Unit (AAPT) - This charge is for each additional unit in the same building as the insured $15 $20 owns and lives in to a maximum of 2. Additional Residence (ADDL) - This charge is for each additional residence (to a maximum of 2 units) owned by the insured: This may consist of a maximum of two separate single-family dwellings or one dwelling $7 $9 designed or converted to house two separate units. (Applies to Residential Fire and Extended Coverages) Seasonal Residence (SDWG) $12 $15 Page 37

38 Saddle animals (SADL) $6 $8 Incidental Office The Insured and/or their spouse (Doctors, Lawyers, Dentists, Real Estate Brokers and Insurance Brokers/Agents) may: maintain a space in their home as an office; and $20 $25 may have clients attend on occasion. It is a requirement that a primary business office is maintained off the residence premises. (OOGN) Day care in the principal residence (max. 5 children incl. those of the insured) (DAYC) $20 $25 Music Teacher (max. 6 students) (MUST) $15 $17 Crown land (LAND) (not for P004 or P005) No Charge No Charge In Servant (INSV) $7 $9 Out Servant (OUTS) $11 $13 Watercraft Liability Watercraft Liability Limits $1,000,000 $2,000,000 Premium Outboards (OUTB) HP No Charge No Charge HP $20 $ HP $35 $42 over 100 HP $60 $63 Inboards/Outboards (INOT) Speed 0-16 mph $35 $50 Speed mph $55 $70 Speed over 30 mph $75 $90 Sailboats/non-powered (SAIL) boats over 26ft in length $70 $90 Note: Under the terms of Liability coverage in Homeowner, Tenant Package and Condominium policies, sailboats and other non-powered craft less than 26ft. are automatically covered. Page 38

39 CAA Tire Coverage This coverage will automatically be included with all of our primary property lines (homeowner, condos and tenants) that also have multi-line auto with CAA. This product will provide our multi-line (home and auto) policy holders with an extension/additional coverage to their existing tires, outside of the manufacturer s warranty. This added protection covers all repairs and replacements due to road hazards. This coverage would include the following: All 4 tires on your existing vehicle, including your winter tires. Repair, due to a road hazard. ($25 limit per tire repair) Replacement, due to a road hazard. (no limit per tire repair) Balancing and mounting of replacement tire. ($25 limit per tire) Wordings may be found on-line entering the following URL: Page 39